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1 - 10 of 22 (0.76 seconds)Section 115JB in The Income Tax Act, 1961 [Entire Act]
Section 37 in The Income Tax Act, 1961 [Entire Act]
Section 44C in The Income Tax Act, 1961 [Entire Act]
Article 7 in Constitution of India [Constitution]
Article 12 in Constitution of India [Constitution]
The Income Tax Act, 1961
Section 195 in The Income Tax Act, 1961 [Entire Act]
The Insurance Act, 1938
Commissioner Of Income Tax, Meerut And ... vs Hyundai Heavy Industries Co. Ltd on 18 May, 2007
The ld. AR drew our attention to Article 7 of the DTAA between India and
Germany to submit that for the profit attributable to the PE is to be determined
which it might be expected to make, if it were a distinct and separate enterprise
and that the expenses which are incurred for the purposes of the business of
permanent establishment including executive and general administrative expenses
is to be allowed as a deduction. The ld AR submitted that the fiction created under
article 7(2) is for the limited purpose of treating the PE as a separate enterprise for
determining its profits and therefore even a payment made to the head office
would have to be allowed as a deduction. The ld AR further submitted that in
order to compute the taxable profits of a PE, it is essential to take into
consideration the expenses incurred by the PE for the purpose of its business
irrespective of the place where they are incurred. The ld AR also submitted that the
Hon'ble Supreme Court in case of Commissioner of Income-tax, Meerut v.
Hyundai Heavy Industries Co. Ltd. [2007] 291 ITR 482 (SC) has held that income
of a foreign enterprise can be taxed in India only qua such portion of income
8 ITA No.4832, 4833, 5094 & 5093/Mum/2024
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft in Munchen
accruing and arising to such a foreign enterprise from profits attributable in India
and that a method is to be found to ascertain the profits arising in India and only
way to do so is by treating the Indian PE as a separate profit centre vis-à-vis the
foreign enterprise. The ld AR argued that the Hon'ble Supreme Court in paragraph
8 held that unless the PE is treated as a separate profit centre, it is not possible to
ascertain the profits of the PE.